STMicroelectronics, a leading global semiconductor company supporting a wide range of electronics applications, has announced an expanded long-term strategic partnership with Amazon Web Services (AWS). The multi-year, multi-billion-dollar commercial agreement spans several product segments and positions ST as a key supplier of advanced semiconductor technologies for AWS’s compute infrastructure. These technologies will be integrated into AWS systems to deliver next-generation high-performance compute instances, lower operating costs, and improved scalability for compute-intensive cloud and AI workloads.
Commercial Agreement
Under this collaboration, ST will provide a broad portfolio of semiconductor solutions based on its proprietary technologies. The supply includes high-bandwidth connectivity solutions such as high-performance mixed-signal components, advanced microcontrollers for intelligent infrastructure control, and analog and power ICs designed to enhance energy efficiency in hyperscale data centers.
The partnership is expected to help customers reduce total cost of ownership while accelerating time-to-market. By leveraging ST’s specialized semiconductor capabilities, AWS can better meet rising demands for higher compute performance, improved efficiency, and greater data throughput driven by the rapid growth of cloud computing and artificial intelligence applications.
The collaboration will help customers reduce total cost of ownership and bring products to market faster. ST’s specialized technologies help AWS address the increasing demands for compute performance, efficiency, and data throughput required to support growing AI and cloud workloads.
Jean-Marc Chery, ST President & CEO, commented: “This strategic engagement establishes ST as an important supplier to AWS and validates the strength of our innovation, proprietary technology portfolio, and proven manufacturing-at-scale capabilities. Our advanced semiconductor solutions will directly power AWS’s next-generation infrastructure, enabling their customers to push the boundaries of AI, high-performance computing, and digital connectivity. This collaboration positions us ideally for further scale-up across multiple market segments, from data center infrastructure to AI connectivity, positioning ST at the center of the AI revolution.”
As part of this expanded relationship, ST will work with AWS to optimize electronic design automation (EDA) workloads in the cloud. AWS’s scalable compute power enables silicon design acceleration, parallelizes design tasks, and gives engineering teams the flexibility to handle dynamic compute demands and speed products to market.
ST has issued warrants to AWS for the acquisition of up to 24.8 million ordinary shares of ST. The warrants will vest in tranches over the term of the agreement, with vesting substantially tied to payments for ST products and services purchased by AWS and its affiliates. AWS may exercise the warrants in one or more transactions over a seven-year period from the issue date at an initial exercise price of $28.38.
.){kind=link}